Even though the pandemics could resurge, buyers don’t seem to worry as the interest in new homes is rising alongside the increasing demand coming from new buyers. Concluded in May 2020, the homebuying demand is 25% when compared to the pre-pandemic levels. With the rising demand for new homes, the housing prices are on a consequent rise as well. In the meantime, new home listings are on the decline.
Table of Contents
The Homebuying Demand in the US on the Rise
The first week of June 2020 is seeing eight straight weeks of the rising demand, ranking higher by 25% when compared to the pre-pandemic demand in January and February of the same year. Despite the rising demand, the main concern about the housing market was the declining number of new home listings. However, with June, the number of listed homes is also on the rise and slowly recovering. After falling by 21% in May 2020 when compared to May 2019, the new listings showed a drop of 15% when compared to June 2019.
Sale Prices Are Surging After the First Wave of COVID-19
The increasing demand and the dropping mortgage rates are causing home prices to rise. That is how the housing market saw sale prices surge by 3.1% while asking prices are nearly 10% up. Home listings dropped by 15% when compared to June 2019 as many sellers are retreating due to the outbreak and the possibility of resurging pandemics.
Expected Migration May Change the Housing Market
There were nearly one million jobs lost during the first wave of COViD-19, which made many people move in search of job opportunities. Many people are moving to smaller cities and towns in search of lower housing prices, jobs, and more affordable housing. As people are moving to the interior of the country, economists expect to see a change in the housing market as well.
